While presenting her second Union Budget, the Hon’ble FM Nirmala Sitharaman unveiled a new in...
The NCLT Amendment 2020 has been created to amend the existing NCLT Rules, 2016. This was notified by the Ministry of Corporate Affairs on the 3rd of February 2020 and will be effective from 6th of February 2020. These amended rules furnish about the new facility for application for takeover offer of companies.
National Company Law Tribunal (NCLT) is a quasi-judicial body set to rule over the registered companies in India. It has been formed after dissolving the Company Law Board. NCLT plays a major role in regulating companies. It is vested with so many powers on it. Some of the powers are such that, it can de-register a company, it can freeze the assets and securities of the company.
In exercise of the powers conferred by sub-section (1) and sub-section (2) of section 469 read with section 230 of the Companies Act, 2013, the Central Government hereby makes the following rules further to amend the National Company Law Tribunal Rules, 2016. These rules may be called the National Company Law Tribunal (Amendment) Rules, 2020.
80A- Application under section 230– An application under subsection (12) of section 230 may be made in Form NCLT-1 and shall be accompanied with such documents as are mentioned in Annexure B.
22A- Sec 230(12) – Application in cases of takeover offer of companies which are not listed. Fees required Rs. 5,000.
The arrangement or compromise in a company includes reorganizing the capital share of a company. This takes place by consolidating the shares of different classes or by dividing the shares into different classes. The compromise or arrangements include the takeover offer of companies other than listed companies. The takeover offer shall be as per the regulation set by the Securities and Exchange Board. If any party finds it injustice about the takeover offer, they can appeal to the Tribunal. The applicant can file the application in Form NCLT-1 and the applicant can be either being a creditor or a member of a company.
The creditor or the member applying for the cases of the takeover offer of the companies must comply with paying an amount of Rs. 5000.
The required for filling and submitting the Form NCLT-1 are as follows:
Also, Read: Process of Filing of Appeal Before NCLT.
The Form NCLT-1 is applicable to apply for several other purposes. The Form NCLT-1 is applicable for any petition or reference. The following are the purposes:
The following are the documents required to be enclosed along with the Form NCLT-1
The main changes are made with the new Rule 80A according to which an application in Form NCLT-1 shall be filed before the tribunal by an aggrieved party in the event of any grievances with respect to the takeover offer of companies other than listed companies in such manner as may be prescribed and the Tribunal may, on the application, pass such order as it may deem fit.